Indonesia`s first automotive company, PT Solo Manufacturing Creative (PT SMK) is preparing for the construction of its car factory after the Esemka Rajawali passed the emissions test by the Propulsion and Motor Thermodynamics Center (BTMP).

(the Esemka Rajawali)

"I`ve spent five months surveying the right location for the plant," said Director of PT SMK Sulistyo Rabono here on Monday.

The establishment of the plant will take up to 10 hectares of land.

The required 10 hectares of land have not yet been identified but the company would start building a micro factory over an area of four hectares located behind the Solo Techno Park, according to Sulistyo.

The completion of the micro-factory is being targeted within a year and production on one car model is set to begin thereafter, with total production up to 200 units per month.

The micro-factory project requires funding of Rp50 billion to Rp100 billion, which includes the provision of basic factory tools and equipment.

"The establishment of the micro plant at Solo Techno Park can be a trigger for our productivity, and with stable production, we will have to move out of the micro factory and move into a bigger facility," he continued.

Regarding the financing of mass production, the company would not invite any major investors. "We decline major investors because it will affect the company`s policy," Sulistyo clarified.

Cooperative investors from a number of vocational schools would be invited for funding the Esemka car production, in the hope that it would provide extensive employment to the community.

"Based on the number of vocational schools that total around 10 thousand, funding would be greatly helped if each school would be willing to invest Rp10-20 million," said Director of Development and Operations Gampang Sarwono.

President Joko Widodo (Jokowi) plans to visit Turkey to develop partnership in strategic industry and economy with the country, Foreign minister Retno Marsudi said here on Monday at the state palace after a meeting prior to the presidents visit to Turkey and Germany.